COMPANY |
Full Truck Alliance Co. Ltd. |
COURT |
United States District Court for the Eastern District of New York |
CASE NUMBER |
21-cv-03903 |
JUDGE |
The Honorable LaShann DeArcy Hall |
CLASS PERIOD |
Pursuant and/or traceable to the June 2021 registration statement and prospectus |
SECURITY TYPE |
American Depositary Shares |
Case Background:
On May 27, 2021, FTA filed a Registration Statement on a Form F-1, which in combination with subsequent amendments of Forms F-1/A filed pursuant to Rule 424(b)(1), would be used for the IPO. On June 23, 2021, FTA filed its final prospectus for the IPO on a Form 424B4, which forms part of the Registration Statement. In the IPO, FTA sold approximately 82,500,000 American Depositary Shares (“ADSs”) at $19.00 per ADS.
The complaint alleges that the Registration Statement failed to disclose the specific known concerns and issues with FTA’s practices and apparent non-compliance with relevant technology laws. Specifically, the Registration Statement failed to disclose FTA’s non-compliance with the relevant regulations or the potential penalties for its non-compliance—including a suspension of new user additions during a cybersecurity review.
The complaint alleges that the Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) FTA’s Yunmanman and Huochebang apps would face an imminent cybersecurity review by the CAC; (2) the CAC would require FTA to suspend new user registration; (3) FTA needed to conduct a “comprehensive self-examination of any cybersecurity risks”; (4) FTA needed to “continue to improve its cybersecurity systems and technology capabilities”; and (5) as a result, the defendants’ public statements were materially false and misleading at all relevant times and negligently prepared.
Current Status of Case:
On October 20, 2023, the Court stayed the matter pending the parties’ representation that they are in the process of settling this action. This action is ongoing.
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